SpaceX endured a difficult start to life in the Nasdaq 100 Index, with its shares falling back to near their IPO price and prompting fresh scrutiny from hedge fund managers over the stock’s valuation and volatility.
According to the Australian Financial Review, the pullback has exposed a growing divide between retail investors and professional money managers. Plato Investment Management’s Dave Allen, who exited his entire position on the third day of trading, described SpaceX as a “meme stock” because of its sharp price swings and warned that investors who bought into the company’s Wall Street debut should be increasingly uneasy.
Some hedge funds are also positioning for further weakness. Minotaur Capital’s Thomas Rice has established a short position in the stock, underscoring concerns that the initial enthusiasm surrounding the listing may have outpaced fundamentals.
